More than a year ago, an entrepreneur operating a small moving company in the Greater New York area approached us, hoping to boost his sales. At that time, we were a full-scale sales broker for moving companies and were also operating BPO services for our own brands in a captive model. Let's call this business for the sake of being anonymous - Movers NY.
During our discovery call, our Business Development Team guided the client through our process and posed standard questions to pinpoint the true needs of the business. We quickly realized that boosting sales was just one aspect of what the client needed to address to ensure success. Instead of establishing a traditional client-broker relationship, we decided to provide him with a single, versatile resource capable of handling sales, customer service, dispatch, and more. We assisted in shaping the business's philosophy, establishing processes and procedures, crafting a seat growth plan, and putting problem-solving processes in place. Naturally, we ensured we brought the best person on board for the role. All of this was offered at a flat monthly rate of $1,200 for the initial 90 days, pending evident traction.
Six months into our partnership, our collaboration had grown to include five full-time resources spanning sales, customer service, chat support, and dispatch. As expected, we revisited and adjusted our pricing to ensure a mutually beneficial arrangement.
Not only did the business saved cost, it boosted its sales and long-term profitability.
Here are the detailed benefits of outsourcing for Movers NY.
Cost Savings: By outsourcing multiple processes, Movers NY significantly reduced its overhead. Savings came from a myriad of areas: salaries, benefits, training, office space, and utilities. A detailed breakdown showed that the following savings:
Salaries and benefits: 60% reduction
Office space (due to reduced in-house staff): 50% reduction
Utilities (from the reduced office space): 30% reduction
Training costs: 40% reduction
This translated to an annual savings of more than $300,000
Value Add: Leveraging through our experience, with broader industry exposures from other companies, we introduced efficient workflows, advanced software tools, and innovative strategies to the client. As a result:
Job completion rates improved by 18% due to more streamlined processes.
Positive online reviews increased by 30% with customers praising professionalism and efficiency.
Referral business went up by 25% due to heightened customer satisfaction.
Leveraging Processes: During the early stages, we guided Movers NY on the implementation of advanced logistical software and analytics. This led to:
A 15% increase in demand forecasting accuracy.
20% more efficient route planning, saving time and fuel.
A 10% boost in overall operational efficiency as measured by jobs completed per day.
24/7 Operation: New York is a city that never sleeps. Why should Movers NY? A continuous customer service operation meant Movers NY never missed a call, ensuring they captured every potential customer night and day. This resulted to:
40% reduction in missed customer calls.
Conversion rates on inquiries increased by 22% due to immediate response capabilities.
15% increase in late-night bookings, a segment they previously missed out on.
Increased Customer Satisfaction: Faster response times, efficient route planning, and fewer errors led to increased customer satisfaction. The results were:
NPS (Net Promoter Score) shot up by 20 points within a year.
Customer complaint rates dropped by 30%.
Customer retention rates increased by 18%.
Boost in Sales Performance This took time to get into the optimal level given the learning curve of the new sales people. However, Movers NY was able to accommodate this wait due to significant reduction in cost. Fast forward:
Sales in the B2B segment increased by 8% due to tapping into previously unexplored markets.
B2C sales went up by 23% thanks to innovative marketing strategies and customer engagement techniques introduced by the outsourced team.
All the above were accomplished while the client maintained full ownership of the day-to-day operations and management of their people from OnSpot. Our support team operated on the side, providing data insights, process enhancements, and other key support resources to ensure that the client was able to focus on what mattered most to their business. This is the power of outsourcing to OnSpot for a small business. As Michael F. Corbett Said:
“Very few business tools have the power to fundamentally transform an organization
- Outsourcing is one of them.”